Okay, so your car’s 10th and final year is coming to an end, and you aren’t really keen about bidding for a new COE. We totally understand – In that case, it’s now time to deregister your car, and to think about scrapping or exporting it. Whether you’re a greenhorn or still making up your mind, here are 10 tips for scrapping or exporting your car to help move you along:
1.When should I look at scrapping or exporting my car?
It is extremely crucial that you don’t leave scrapping or exporting your car till the last minute. Why? Well, you do know that once your COE expires, your car cannot be driven, don’t you? So, unless you want to incur extra costs towing your car to the scrapyard, we highly recommend you get your affairs in order no less than three weeks before your COE expiry date. The only reason you should do it at the last minute is if procrastination gives you a particular rush in your blood, in which case, we highly recommend therapy.
2. Should you scrap, or export your car?
Some motorists choose to export their car because it gets them more money, while others scrap their car because it’s too old or in bad condition and exporters don’t want it. Regardless of whether you scrap or export your car, you’ll get back money based on your car’s deregistration value. Which brings us to the next thing you should know:
3. What is my car’s deregistration value a.k.a paper value?
Deregistration value is the sum of money you’ll get after deregistering your car.
Okay, time for some simple Mathematics:
Paper Value = Total COE (Certificate of Entitlement) rebate + Total PARF (Preferential Additional Registration Fee) rebate
How do you find your COE and PARF rebates? Simply ask LTA. Note: You’ll need to select your intended deregistration date, which will affect your total paper value.
4. How do you get a higher scrap value?
Scrap Value = Deregistration value + Body value. While the body value you’ll be getting out of your car is highly dependent on factors like its make and model, there’s something else you’ll need to remember: it’s all about supply and demand.
For example, let’s say in 2010 and 2011, there were approximately 10% less new cars registered compared to previous years. Thus, ten years after, in 2020, the limited supply of cars meant that there was an “under supply” of cars to be scrapped, thus hiking up the body value for car bodies that year.
5. Do I earn more from exporting my car?
The short answer is: Yes. For those of you who have no idea what the exporting process is like, a car exporter basically helps you sell your car to dealers in other countries. Not all cars qualify as exports though – there are requirements to be met.
While car export requirements change intermittently, three factors remain ever-crucial: Your car’s popularity, whether there’s a demand for it, and its overall condition.
If your car meets the requirements, congratulations! Otherwise, don’t fret – sending your car to a scrapyard and selling it for parts isn’t a terrible option either.
6. How do I get a high selling price with an exporter?
The prices exporters quote for your call will largely depend on the contacts and countries your exporter deals with. It’s not surprising, really – different car brands have different levels of appeal in every country, so it’s always good to obtain offers from multiple exporters before making your decision.
If you’d like to ensure you’re getting the highest quotes for your car, why not receive a non-obligatory quote from us? At Brze, we obtain the best offers from multiple exporters to make sure you’re getting the best deals available.
7. What happens when I scrap or export my car?
If this is your first time, we understand that the idea of scrapping and exporting your car might still draw a huge blank. Before we move on, let us paint a clearer picture of the processes involved:
Scrapping your car (Steps)
- Drive to an LTA-appointed car scrapyard (Remember to bring your completed deregistration form)
- The scrapyard pays you for the car’s body on the spot.
- You obtain your car’s deregistration value from LTA, and for that, you’ll need to sit tight and wait a couple of weeks. You should get your cash within a month’s time.
Exporting your car (Steps)
- Get in touch with multiple exporters
- Your exporter will work through their network of car dealers and give you their quote
- Choose the one with the best deal
- Receive immediate payment for your car (No messy paperwork on your end needed – Your exporter will complete it for you)
8. Can I scrap or export my car myself?
Yes, you can! One of the benefits of scrapping your car yourself is that you’ll get the full paper value and your road tax rebate, which will be released to you in three to four weeks after the deed. If you’re looking to maximize your earnings from deregistering your car, this might just be the route for you.
However, do ensure that you’re actually able to commit to the entire process, as it can be tedious, and you’ll be dealing with a lot of paperwork and legal procedures. If you’re not decided on whether you’ll have the time, don’t do yourself in by taking on a project you can’t handle.
9. What are the pros and cons of going through a scrapyard or exporter?
Firstly, you’ll be getting additional body value for your car. Secondly, many sighs of relief will be heaved – Why wouldn’t they when all the paperwork’s sorted? You will also receive your remuneration right after you hand your car over, and won’t have to wait for LTA to release your cash.
Of course, scrap yards and exporters need to put bread on the table as well. There will be a 1-2% deduction from the paper value if you go down this route.
10. Do you get money when you deregister a COE car?
A COE car is a vehicle that has had its COE renewed for another five or ten years instead of being deregistered after its first ten years, and yes, you do get some money when you deregister a COE car! However, do note that with COE cars, your deregistration value only includes your COE rebate.
We hope our quick guide on scrapping or exporting your car helps you decide what the best route for you is. Remember, deregistration is a good chance for you to make some solid money from your car. So please, please, pretty please – Do. Not. Leave. It. Till. The. Last. Minute.